Union Finance Minister Nirmala Sitharaman on Sunday presented the Union Budget 2026–27, outlining an ambitious infrastructure and connectivity push aimed at accelerating economic growth, promoting sustainability, and strengthening India’s logistics and manufacturing ecosystem.
A key highlight of the Budget is the development of seven high-speed rail corridors to promote environmentally sustainable passenger transport and enhance inter-city connectivity. The proposed corridors include:
Mumbai–Pune
Pune–Hyderabad
Hyderabad–Bengaluru
Hyderabad–Chennai
Chennai–Bengaluru
Delhi–Varanasi
Varanasi–Siliguri
“These corridors will act as growth connectors between major economic hubs,” Sitharaman said.
Inland Waterways & Freight Corridors
The Finance Minister also announced plans to operationalise 20 new national waterways over the next five years, starting with National Waterway 5 in Odisha. The waterway will connect the mineral-rich regions of Talcher and Angul and industrial hubs such as Kalinganagar to the ports of Paradip and Dhamra, boosting cost-efficient and sustainable cargo movement.
In addition, the government will establish new dedicated freight corridors connecting Dankuni in the East to Surat in the West, further strengthening multimodal logistics.
To support inland navigation, ship repair ecosystems catering to inland waterways will be set up at Varanasi and Patna, along with training institutes as regional centres of excellence to develop skilled manpower for the waterways sector.
Boost for Cities, SMEs and Manufacturing
Reaffirming its focus on balanced urban development, Sitharaman said the Centre will continue to invest in infrastructure in tier-2 and tier-3 cities with populations above five lakh.
To strengthen the MSME sector, the Budget proposes a ₹10,000 crore fund to create “champion SMEs”, aimed at improving scale, competitiveness and access to finance.
The Finance Minister also announced a container manufacturing scheme to build a globally competitive ecosystem, addressing supply chain vulnerabilities.
Textiles, Sports Goods & Traditional Industries
The Budget proposes setting up mega textile parks with a focus on technical textiles, supported by an integrated textile programme with five sub-components to drive value addition and exports.
Highlighting India’s manufacturing potential, Sitharaman said the country could emerge as a global hub for high-quality, affordable sports goods. She also announced the Mahatma Gandhi Gram Swaraj initiative to strengthen Khadi and handloom sectors, and a scheme to revive 200 legacy industrial clusters across the country.
Overall, the Union Budget 2026–27 underscores the government’s emphasis on infrastructure-led growth, sustainable transport, and industrial competitiveness, with a strong focus on employment generation and regional development.
